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SoftBank's Vision Fund 2 May Hit Only $30bn in First Close

Professor of Financial Economics and Part-time Value Investor, Transfin.
Dec 24, 2019 10:54 AM 1 min read
Editorial

Vision Fund 2 may hit only $30bn in first close. Nemaska Lithium files for bankruptcy protection.

 

SOFTBANK

Vision Fund 2 may hit only $30bn in first close.

Second Time (Not) Lucky: SoftBank Vision Fund is reportedly likely to announce a first close of around $30bn for its second edition of the collosfal investment fund by Q1 of next year. This is considerably smaller than its maiden corpus of $100bn.

 

It's been a rough year for the Japanese group, chiefly because of the debacle that was WeWork's failed IPO. SoftBank will recalibrate its strategy to focus on mid-stage growth companies which have a positive top line and spend longer periods of time in due diligence before backing these firms, said Rajeev Misra, CEO of SoftBank Vision Fund.

 

“When you are making so many investments in such little time, you are trusting the data as the time spent on diligence is limited. We learnt a lot. Investing is a patient, long-term process, it is not about the speed of deployment, and Masa (Masayoshi Son, founder & CEO of SoftBank Group) is himself saying this. We are strengthening things like governance and rights in portfolio companies,” he said. ET Tech

Nemaska Lithium files for bankruptcy protection.

In Other News: SoftBank-backed Nemaska Lithium has filed for bankruptcy protection. This follows months of attempts by the Montreal-based mining firm to find new investors in order to continue operations. FT

FIN.

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